Friday, May 26, 2017

5 Recent Trends in Real Estate Investment That You Need to be Aware Of

The thing about investing in real estate properties is that you are guaranteed a more or less steady source of income; and at the end of the day, that is the whole point behind investments. Halfway into 2017, trends show that in the Australia, real estate is a lucrative choice when it comes to investments.

If statistics are anything to go by, the numbers of property investments in the Australia have increased by at least 9 million in between the years 2005 & 2015.

It is estimated that by August 2017, the rate of investments in real estate will go up by at least 1.7 %. Of course, there are a lot of risks involved when it comes to such investment; however, there are only few investments as rewarding as real estate.

If you are planning to invest in property in the United States in 2017, the most important quality you must possess is that of adaptability. As an investor, you cannot afford to be stuck in the past; you must move with the trends.

This year, there are a few real estate investment trends that have been observed. Some of them are:

1. Conveyancing

Conveyancing is a concept that must be understood before you invest in real estate. When property changes hands, a number of legal guidelines must be followed.

Irrespective of whether you sell or buy real estate properties, you must be thorough with this concept before you make the investment.

2. Growth in global economy

Well, common sense tells you that the real estate market grows in accordance with the global economy which is bound to increase by at least 3.4 % this year. Now although that is better than last year, it doesn’t match up to the predictions made by IMF.

In light of Brexit and the US economy which went downhill, the global economy took a turn for the worse. However, the numbers have gone up and things don’t seem all that bad now. Before one invests in the real estate market, it would be wiser to study and analyse the stocks beforehand; take into account the foreign markets before you take the plunge.

Remember, a sort of global slowdown is expected in the upcoming months – one that could affect the real estate market.

3. Arrival of drone technology

In the United States, the FAA or Federal Aviation Administration has permitted the usage of drone technology when it comes to commercial activity.

Now, this has opened up newer possibilities in terms of displaying available properties. Investors are required to vet office buildings, homes, commercial properties; with the help of drone technology, this has become all the more flexible. Viewing the property through drone videos means you would be able to observe and study it from all possible angles; for investors who don’t wish to travel miles to check the property out, this happens to be blessing in disguise.

4. Home construction on the rise

Construction of new homes which had suffered a setback last year, has improved in 2017. The rate of construction of new homes will increase by at least 11 % this year – while the rate had been just about 9 % last year. And the good news is, this isn’t just for residential properties but also commercial real estate.

In the case of commercial properties, the estimated growth is supposed to be 5 %. For investors who do not wish to invest in residential properties, commercial real estate is a lucrative opportunity. In the United States, investors prefer ground up properties; while the rates have increased for both commercial and residential properties, it is the commercial real estate which has seen a massive surge this year.

5. A change in how properties are utilised

The new concept of optionality that has emerged in the field of real estate has widened the dimension when it comes to real estate investments. It is also important to understand the concept of space and how it should be used. Co living is a new phenomenon in 2017; for instance, the residential properties that are available today combine the private and socialising areas in one common space.

A number of trends are cropping up in the field of real estate, both residential properties and commercial ones, this year; these trends are bound to affect investments and investors. If you are planning to invest in real estate, you must review the prospective investments at least a year in advance.